Saab will announce a strategic partnership with China's Hawtai Motor Group on Tuesday.
Saab Chairman Victor Muller told Reuters that the deal involved investing in Saab's owner, Spyker Cars. Muller, who is currently in Beijing, declined to give more details.
Hawtai Motor Group's main business includes the development, sales and export of motor vehicles, diesel engines for clean-type sedans and gearboxes for automatic transmissions, according to a Jan. 7 filing from China Minsheng Banking Corp. It could not be reached for comment.
Muller and Richard Zhang, Hawtai Motor vice president, will hold a press conference in Beijing at at 2:30 pm local time (8:30 CET) on Tuesday to announce the tie-up.
Saab has been seeking a Chinese partner in order to raise funds amid a cash crunch that has forced the automaker to halt production. The move also would give Saab entry to the world's largest market.
Saab also hopes for an investment from Russian financier Vladimir Antonov, but that deal must be approved by the European Investment Bank.
Antonov wants to buy Saab's plant, real estate and equipment, and lease those assets back to the automaker in return for a 30 percent stake in Saab.